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A Portfolio Contains Two Securities and Has a Beta of 1.08.The

Question 75

Multiple Choice

A portfolio contains two securities and has a beta of 1.08.The first security comprises 54 percent of the portfolio and has a beta of 1.27.What is the beta of the second security?


A) .79
B) .86
C) .62
D) .82
E) .93

Correct Answer:

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